New Delhi: Reliance Infrastructure Ltd (R-Infra), India’s third largest utility, agreed to pay marketing charges sought by Reliance Industries Ltd (RIL), which last month issued a notice to suspend natural gas supplies for defaulting on the payments.

R-Infra sought withdrawal of the suspension notice, the company said in a letter to the oil ministry, a copy of which was emailed to Bloomberg. The ministry should advise if RIL is entitled to charge the marketing margin, according to the letter signed by vice-president Kamal Kant.

The company was paying the government-approved price of $4.20 per million British thermal units, R-Infra said in a 24 September letter to RIL, a copy of which was emailed to Bloomberg. It didn’t pay the marketing charges, which are illegal and unauthorized, according to the letter.

R-Infra responded to the notice of suspension by RIL on 7 October, saying it would pay the full billed amount, including the marketing charges. The two companies signed an agreement for gas supply to a plant in Andhra Pradesh on 28 April.

Anil Ambani, chairman of R-Infra, wants RIL to supply gas from the KG D6 field at 44% less than the government-approved price. The Supreme Court is scheduled to start final hearings in the lawsuit from 20 October.